Automatic Age

Issue: 1930 November

12
November, 19 SO
A u t o m a t ic A g e
Around the automatic world new inventions
and ideas are appearing fast. This injects
refreshing streams of enthusiasm into the
trade, but the other side of the picture shows
that the inventors do not always get what is
coming to them.
There are many serious
questions in this problem.
THE IN D U ST RY ACTIVELY INTERESTED IN
PATENT PROTECTION
A growing industry such as the coin ma­
chine trade has vital interests at stake in
the .protection .that patents offer to new in­
ventions and developments. New inventions
calling for patents are piling fast upon each
other as the trade expands, and general
business conditions dlo not seem to have less­
ened the rate of these developments. One
of the best signs of improvement in the
automatic trade is that new inventions are
still actively coming to the front to arouse
new interest and new enthusiasm. About
once each year A utomatic A ge is in the
habit of giving general information on the
subject of patents that may be of value to
the trade.
Recent information relating to patents
seems to bear the theme that patents do not
fully protect after all, and that industries
will have to face this fact and make the
best of the situation. While criticism is
being made of the sluggishness in the Pat­
ent office, the Patent officials give out in­
formation of a heavily increasing business
and that the work is being expedited grad­
ually in a more systematic matter. It is
reported that more than 3,500 persons ap­
plied for patents in the last week of May,
before the rate was advanced to $25, al­
most doubling the number of average week­
ly receipts of first applications, according
to an oral statement by Commissioner
Thomas E. Robertson, of the Patent Office,
Department of Commerce.
Since the rate of the final fee was ad:-
vanced also from $20 to $25, 3,175 persons
sent their applications accompanied by the
final fees, almost quadrupling the weekly
average of 800 receipts for this .particular
application. When the final fee is received
the Patent Office issues a complete grant
of patent.
“The Patent Office has never known such
a deluge of work,” Commission Robert­
© International A rc a d e M u seu m
son said. “As it takes the Printing Office
about four weeks to issue a patent, the
patents that were ordered to issue last week
will be issued on June 24, and in that issue,
instead of having the usual 800 patents, the
Official Gazette will contain nearly 3,200.”
Comparative figures for the leading in­
dustrial nations of the world indicate that
the United States leads by about 200 per
cent in the number of patents issued', over
its nearest competitor, France.
A lengthy article recently published in
the Saturday Evening Post gives the ideas
of Thomas A. Edison on the thoroughness
of patent protection.
He says rather
frankly in part:
Billion a Year for Workers
“Nearly $10,000,000,000, they tell me, are
invested in modern industries which devel­
oped from ideas embodied in my inventions
and my patents. A billion or so dollars, I
am told, may be the annual .total income to
artisans and workers in fields thus created.
But if I were to tell how the inventor has
fared, candor would! compel me to make an
avowal like this: ‘I have made very little
profit from my inventions.' In my lifetime
I have taken out 1180 patents, up to date.
Counting the expense of experimenting and
fighting for my claims in court, these pat­
ents have cost me more than they have re­
turned me in royalties. I have made money
through the introduction and sale of my
products as a manufacturer, not as an in­
ventor.’
“I would not care to go further into this
aspect of the matter, for many obvious rea­
sons. But what I have just said is the
plain, unvarnished truth. I am not saying
it in the humor of complaint. I am far
enough along now to make money from
manufacturing, but I am speaking for the
young fellows just starting out. We have
a miserable system in the United States
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November, 1930
A u t o m a t ic A ge
for protecting inventions from infringe­
ment. I have known of several inventors
who were poor. Their ideas would have
made them millionaires, but they were kept
poor by the pirates who were allowed
through our very faulty system of protec­
tion to usurp their rights. The usurpation
is particularly apt to obtain in the case of
some great epoch-making patent. I deny
that I have ever enjoyed a monopoly upon
anything that I have ever invented, with
this single modification: The producers of
motion pictures did pay me royalties until
my patents expired. But even in that case
I had to fight a long time in court over my
claims.
Money for Defense
“The pirates can readily get all the
money they require—millions, if needed—
to carry on their contests. The first step
is to hire a sharp lawyer—one who can
make any judge unfamiliar with technology
believe that black is white. They set up
the claim that they and not the inventor,
should be recognized, as the originator of
certain ideas. They boldly strut into court
and enjoin the inventor from manufactur­
ing anything from his own creations and
formulas, even though the inventor may
hold in his hands a patent issued by the
United States Government. In previous
years these pirates were thus enabled to
hold; the rightful inventor back by persist­
ing in litigation sometimes for ten, twelve
and fourteen years. Meanwhile, the courts
would not infrequently permit the pirates,
‘for the good of mankind,’ to proceed with
the manufacture of the same device, pend­
ing litigation; so there was, in reality, no
such thing as an inventors’ monopoly. True
enough, a patent is supposed to carry the
Government’s protection or seventeen years,
and I suppose the man in the street, or the
man between plow handles, fancies that the
inventor’s life during those seventeen years
of grace is down a primrose path to a pot
of gold at the foot of the rainbow.
“Do you see that little incandescent lamp
hanging over my head? Well, I fought in
the courts of this and other countries for
fourteen years to establish my rights as
inventor, even after I had the patents. My
associates and I had to spend more than
$ 1 , 000,000 to prove our rights to the in­
candescent light, even though our claims
had. been duly vouched by the United States
patent office. First, a Frenchman bobbed
Up and claimed ihe was the inventor. Then,
© International Arcade M useum
13
I believe, a man or several men in England
went to court. Everywhere, all around the
earth, the pirates kept picking on that little
lamp, and they were able to keep me out of
the profits on my patents until there were
ibut three years left out of the seventeen
years. So, while the light was a boon to
the world at large, to the inventor the pat­
ent was well-nigh useless.
“Some improvement has been made in the
law of court procedure since then. A con­
testant, or pretender, is not allowed, so
much time now as formerly. He must make
a quicker show-down— spread his cards on
the table. After I had made many and
varied protests about the utter lack of pro­
tection in the courts, I was asked to go be­
fore both branches of Congress to see what
could be done to tighten up the laws. I
appeared before committees and showed
them that an inventor had mighty little
show as matters stood. But about the only
improvement made was in speeding up the
action in court so that the real inventor
could not 'be so long enjoined from manu­
facturing his dlevice.
Special Patent Court
“Now, a great many persons will say,
‘Anybody can find fault.’ They will want
to know what can I suggest to correct the
evils of the present way of enforcing the
patent laws. First, I would say create a
separate and special court. Take the whole
business out of the regular judicial system.
It has never belonged there. What does the
average judge of our district courts, or cir­
cuit courts of appeal— or even of the Su­
preme Court, for that matter—know about
the technical phases of chemistry or phy­
sics? These judges have been lawyers all
their lives, and theere are—some of them—
distinguished for their ability as jurists.
But when it comes to understanding a con­
test over amperes, or ohms, or the atomic
theory, or subatomic energy, they can be
fooled by a smart lawyer quite as soon as,
if not sooner than, any farmer from the
hinterlands who does know which end of
a cow gets up first, and why.
“I would appoint, to this special court for
trying patent cases, judges from the facul­
ties of colleges of technology, men who
know something about science. They cou’d
travel around the country and hold court,
if need be, in the factories and, workshops
of the inventors and their competitors, and
get first-hand data upon each issue in-
(Continued on page 17)
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